UK banking giant Barclays is reportedly evaluating blockchain technology for core banking functions, seeking a platform able to handle payments, deposits and crypto-related use cases such as stablecoins and tokenized deposits, Bloomberg said Friday, citing people familiar with the matter.
The lender has issued requests for information to multiple technology providers (unnamed) and could select a vendor as early as April, the report said. The initiative aligns with Barclays’ recent moves into digital assets — the bank made a stablecoin-related investment in Ubyx, a US-based stablecoin clearing platform, last month — and has also been linked in separate, unconfirmed reports to a potential role in an IPO for crypto hardware maker Ledger.
Bloomberg framed the initiative within a broader push by banks and Big Tech to evaluate stablecoins, which promise faster, lower-cost and 24/7 settlement compared with traditional rails. Institutions are exploring tokenized deposits and on-chain payment systems to streamline cross-border transfers and reduce intermediary layers.
The renewed interest extends beyond banks: Meta Platforms is reportedly revisiting stablecoin plans after shelving its Diem project, underscoring Big Tech’s returning focus on blockchain payments.
For traditional lenders, widely adopted privately issued digital dollars pose both opportunity and risk. Stablecoins could enable new payment services but may also divert liquidity away from conventional bank deposits and weaken control over payment flows — core elements of banks’ business models.
Regulatory debates are active, particularly in the United States, where lawmakers are discussing market structure and stablecoin legislation, including whether issuers should be permitted to offer yield or rewards. Even without yield-bearing features, large-scale stablecoin adoption could shift deposits into tokenized alternatives.
Stablecoins’ combined market capitalization is approaching $310 billion, according to DeFiLlama.
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